Scammers Gonna Scam Scam Scam Scam Scam

Were you singing that title to the tune of Taylor Swift’s “Shake it Off”? Yeah, me too, and with good reason. I want you to remember how important this topic is and how common it is so you don’t fall victim to the newest (or oldest) scams. So, you’re welcome for getting that song stuck in your head because now you’ll be thinking of fraud prevention at the same time. :)

In my last post about scams, I talked about phishing, overpayment scams and automatic debit scams, which haven’t gone away with 2019. This time, I’m going to cover common phone scams and date scams.

Phone Scams

Everyone (seriously, even my seven-year-old) knows about spam calls. If half of the calls you received last year were from spammers, you aren’t alone. Literally, 50% of mobile phone traffic in 2018 and into 2019 was generated from robocallers or spam callers1⁄. These are people who make money via caller ID services (if you want to read the in-depth explanation on how they do this, click here), or by misleading you into giving out financial information over the phone. Often times, this is achieved via recording, but scammers can also send text messages or email you.

Sometimes, you might even hear a real person on the other end of the line who threatens you and tries to bully you into giving out information. We’ve all heard the stories of someone receiving a threatening call from an imposter claiming to be a representative from the IRS (or Social Security Administration, police, or a representative from another official government entity). In fact, these calls make up the top reported fraud complaints received by the FTC.2⁄ I can’t tell you how many calls I’ve received from recordings talking about healthcare or insurance and none of them are legit.

These scammers operate on intimidation tactics to cause fear and make you react without thinking logically. As a society, we are trained to respond to authority by appeasing or acquiescing to demands in an effort to “do the right thing.” That’s what the fraudsters are banking on when they call you threatening actions if you don’t do what they are asking you to do. Common threats include legal action, fines, or even jail time.

Even if you owe back taxes, fines or fees, the IRS will only attempt to make arrangements with you after sending you a notice in the mail; they will never ask you for immediate payment by prepaid cards or wires. Furthermore, you will always have the opportunity to appeal or challenge the IRS’s decision; and it should be stated for the record that the IRS will never threaten your arrest over the phone. Don’t believe me? It’s right here on their website.

The best thing you can do is to not even pick up the call in the first place. If you don’t answer the call, you can’t be conned into handing over your personal information. Any legitimate representative is going to leave a message; if there is a voicemail left, don’t call back the number left by the caller until you have done some research. Always verify that the number you are calling is, in fact, a known (published) phone number to the organization or agency you are calling.

Something to keep in mind is that the IRS, Social Security Administration, police department or any other official government organization will conduct themselves professionally; they will not threaten you or bully you. If you get the feeling that something is “off,” it more than likely is. Be sure to report suspected scams here.

You have the option to block the number. Although, scammers tend to buy blocks of numbers and will continue to call from different numbers. If it’s free for you to block, why not give it a shot? If your carrier requires you to pay for this feature, it’s probably not worth it.

If you do happen to answer, NEVER press a number to “remove yourself from their list,” or speak to someone. It can lead to more calls if you can imagine that.

Another common trick these scammers use is to ask you a question hoping you say “yes” in response. They might ask, “Is this (your name)?” or, “Can you hear me?” What they are really doing is recording your response to use as a voice signature authorizing telephone charges. Instead, when someone asks, “Is this (your name)?”, simply respond, “Speaking.” When they ask, “Can you hear me?” you can answer, “I can hear you.”

Date Scams

Ahh, the good old days. Remember back in 2019 when we could all write checks (yes, some people do still write checks) with the date formatted XX\XX\19? Yeah, that should for sure not happen in 2020. And, no, I don’t just mean the first three weeks of the new year when we are all still writing the previous year and have to cross it out. Gone are the days where you write the two-digit year. Scammers are opportunists, and anything they see that can provide them with the chance to defraud you, they’re going to take advantage of it. Seeing XX/XX/20 on a check opens the door for them to simply write in another date. In just the stroke of a pen, you have a backdated check ready to be cashed – regardless of the balance in your account. Similarly, you should write out the four-digit year on any contract or official document to prevent the potential for falsified debt.

Fraud Prevention Checklist

·         Register all of your phone numbers on the National Do Not Call Registry.

·         Monitor your financial transactions carefully and often.

·         If your creditors or financial institution offers them, sign up for Fraud Alerts and Purchase Alerts.

·         Monitor your credit report by requesting your free annual credit report from all three bureaus.

*Bonus Tip: I recommend staggering the requests throughout the year. Need a refresher on why it’s important to spread out the requests throughout the year? I talk about it in this post.

·         If you’ve been the victim of fraud, you can place an alert on your credit report, or freeze the report altogether. There may be other factors to consider by doing this, so please weigh your options before you make the decision.

Have you been affected by these or any other scams? What tips did you find helpful? Be sure to leave me a comment or email me directly – I want to hear from you!

Krista Kyte is a personal finance blogger and personal banker with over 17 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that will help consumers reach and maintain financial security, and start living the life they’ve always wanted.

Resources:

1/ First Orion. “Nearly 50% of U.S. mobile traffic will be scam calls by 2019”. Retrieved on 01/09/2020 at https://firstorion.com/nearly-50-of-u-s-mobile-traffic-will-be-scam-calls-by-2019/.

2/ Fletcher, E. “Government imposter scams top the list of reported frauds”. Retrieved on 01/09/2019, at https://www.ftc.gov/news-events/blogs/data-spotlight/2019/07/government-imposter-scams-top-list-reported-frauds